ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
TSX:ACO-X - Toronto Stock Exchange - CA0467894006 - Common Stock - Currency: CAD
Overall ACO-X gets a fundamental rating of 5 out of 10. We evaluated ACO-X against 22 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-X get a neutral evaluation. Nothing too spectacular is happening here. ACO-X has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACO-X had positive earnings in the past year.
ACO-X had a positive operating cash flow in the past year.
ACO-X had positive earnings in each of the past 5 years.
In the past 5 years ACO-X always reported a positive cash flow from operatings.
1.2 Ratios
ACO-X has a Return On Assets of 1.58%. This is comparable to the rest of the industry: ACO-X outperforms 50.00% of its industry peers.
The Return On Equity of ACO-X (9.03%) is better than 100.00% of its industry peers.
ACO-X has a Return On Invested Capital (3.57%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.03% | ||
| ROIC | 3.57% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
Looking at the Profit Margin, with a value of 8.49%, ACO-X is in line with its industry, outperforming 50.00% of the companies in the same industry.
ACO-X's Profit Margin has declined in the last couple of years.
ACO-X has a Operating Margin of 23.56%. This is in the lower half of the industry: ACO-X underperforms 72.73% of its industry peers.
ACO-X's Operating Margin has declined in the last couple of years.
The Gross Margin of ACO-X (76.00%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ACO-X has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.56% | ||
| PM (TTM) | 8.49% | ||
| GM | 76% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACO-X is destroying value.
ACO-X has about the same amout of shares outstanding than it did 1 year ago.
ACO-X has less shares outstanding than it did 5 years ago.
ACO-X has a worse debt/assets ratio than last year.
2.2 Solvency
ACO-X has an Altman-Z score of 0.74. This is a bad value and indicates that ACO-X is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.74, ACO-X belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
ACO-X has a debt to FCF ratio of 25.02. This is a negative value and a sign of low solvency as ACO-X would need 25.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.02, ACO-X belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ACO-X has a Debt/Equity ratio of 2.56. This is a high value indicating a heavy dependency on external financing.
ACO-X has a worse Debt to Equity ratio (2.56) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.72
WACC4.99%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ACO-X should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.34, ACO-X belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ACO-X has a Quick Ratio of 1.24. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
ACO-X has a Quick ratio of 1.24. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.96% over the past year.
Measured over the past 5 years, ACO-X shows a small growth in Earnings Per Share. The EPS has been growing by 6.10% on average per year.
Looking at the last year, ACO-X shows a small growth in Revenue. The Revenue has grown by 6.84% in the last year.
The Revenue has been growing slightly by 0.98% on average over the past years.
EPS 1Y (TTM)11.96%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%8.33%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.57%
3.2 Future
The Earnings Per Share is expected to grow by 2.86% on average over the next years.
ACO-X is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.42% yearly.
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue Next Year4.04%
Revenue Next 2Y3.52%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ACO-X is valuated reasonably with a Price/Earnings ratio of 11.33.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-X is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. ACO-X is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.83, the valuation of ACO-X can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ACO-X is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
ACO-X is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-X is valued a bit cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACO-X is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACO-X does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.4
PEG (5Y)1.86
EPS Next 2Y3.6%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, ACO-X has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.98, ACO-X pays less dividend than the industry average, which is at 5.54. 95.45% of the companies listed in the same industry pay a better dividend than ACO-X!
Compared to an average S&P500 Dividend Yield of 2.37, ACO-X pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 3.93%.
ACO-X has paid a dividend for at least 10 years, which is a reliable track record.
ACO-X has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
51.99% of the earnings are spent on dividend by ACO-X. This is a bit on the high side, but may be sustainable.
The dividend of ACO-X is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.99%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
TSX:ACO-X (7/11/2025, 7:00:00 PM)
49.87
-0.28 (-0.56%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.52%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap5.61B
Analysts78.67
Price Target56.95 (14.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP51.99%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)1.49%
Max EPS beat(2)3.12%
EPS beat(4)4
Avg EPS beat(4)5.26%
Min EPS beat(4)1.49%
Max EPS beat(4)10.76%
EPS beat(8)7
Avg EPS beat(8)4.56%
EPS beat(12)10
Avg EPS beat(12)4.53%
EPS beat(16)13
Avg EPS beat(16)5.41%
Revenue beat(2)0
Avg Revenue beat(2)-9.61%
Min Revenue beat(2)-18.52%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-10.9%
Min Revenue beat(4)-18.95%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-12.58%
Revenue beat(12)1
Avg Revenue beat(12)-9.63%
Revenue beat(16)2
Avg Revenue beat(16)-7.85%
PT rev (1m)3.08%
PT rev (3m)4.04%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.11 | ||
| P/FCF | 11.51 | ||
| P/OCF | 2.34 | ||
| P/B | 1.19 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 8 |
EPS(TTM)4.4
EY8.82%
EPS(NY)4.6
Fwd EY9.23%
FCF(TTM)4.33
FCFY8.69%
OCF(TTM)21.35
OCFY42.81%
SpS44.74
BVpS42.07
TBVpS30.28
PEG (NY)3.4
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 9.03% | ||
| ROCE | 4.66% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.92% | ||
| OM | 23.56% | ||
| PM (TTM) | 8.49% | ||
| GM | 76% | ||
| FCFM | 9.68% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
ROICexc(3y)4.06%
ROICexc(5y)3.97%
ROICexgc(3y)4.27%
ROICexgc(5y)4.16%
ROCE(3y)5.04%
ROCE(5y)4.9%
ROICexcg growth 3Y1.58%
ROICexcg growth 5Y-6.25%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-6.55%
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 25.02 | ||
| Debt/EBITDA | 6.02 | ||
| Cap/Depr | 233.01% | ||
| Cap/Sales | 38.04% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 119.64% | ||
| Profit Quality | 114.05% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.74 |
F-Score4
WACC4.99%
ROIC/WACC0.72
Cap/Depr(3y)212.07%
Cap/Depr(5y)195.52%
Cap/Sales(3y)33.77%
Cap/Sales(5y)31.75%
Profit Quality(3y)134.57%
Profit Quality(5y)187.54%
High Growth Momentum
Growth
EPS 1Y (TTM)11.96%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%8.33%
EPS Next Y3.34%
EPS Next 2Y3.6%
EPS Next 3Y2.86%
EPS Next 5YN/A
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.57%
Revenue Next Year4.04%
Revenue Next 2Y3.52%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
EBIT growth 1Y6.37%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year429.28%
EBIT Next 3Y82.47%
EBIT Next 5YN/A
FCF growth 1Y-22.33%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y6.1%
OCF growth 3Y5.63%
OCF growth 5Y7.34%